Shareholder Activism Is a Key Tool for Bringing About Meaningful Change

The article covers AQTION’s second edition of the “Stewardship in AQTION” report, which analyses the stewardship practices of 65 of the world’s largest institutional investors, collectively managing over $91 trillion in assets.

The key findings highlighted by Hakseong Kim include:

• 39 investors have integrated activism into their voting guidelines. Vanguard, for example, assesses a company’s recent performance compared to its competitors on board oversight and the quality of activist proposals.
• 15 investors have filed shareholder proposals in the last three years on topics like climate change, human rights, DEI, and governance reform.
• Institutional investors increasingly view activism as a legitimate tool to influence governance and align with long-term goals.
• Regional differences are evident: European investors are more likely to challenge management, while Korea’s NPS typically supports board proposals and does not invest in activist funds.

The full article can be accessed using this link.